OFT Seeks Probe Of UK Auto Insurance System

Law360, New York (May 31, 2012, 8:27 PM EDT) -- Auto insurers in the U.K. face an antitrust probe in the wake of the Office of Fair Trading's announcement Thursday that “dysfunctional” competition in the industry may inflate driver premiums by £225 million ($347 million) each year.

The watchdog group has provisionally decided to refer the private motor insurance market to the Competition Commission after finding evidence that a lack of controls in insurance-ordered auto repairs may prevent, restrict or distort competition.

Under Britain's system, after a road traffic accident, the at-fault driver's insurer is responsible...